Lowe's Expands Professional Market with Two Major Acquisitions Totaling $10.13 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Source: Fool
- Acquisition Strategy: In 2025, Lowe's significantly bolstered its competitive position in the $250 billion professional market by acquiring Artisan Design Group for approximately $1.33 billion and Foundation Building Materials for $8.8 billion, aiming to provide comprehensive supply solutions tailored for professional contractors.
- Financial Performance: Despite a slight decline in net earnings due to acquisition costs, Lowe's reported approximately $1.6 billion in net earnings for Q3 2025, with online sales rising over 11% year-over-year, demonstrating resilience in a challenging economic environment.
- Dividend Growth: Lowe's maintains a dividend payout ratio of about 40%, with a remarkable 330% growth rate in dividends over the past decade, indicating a strong commitment to shareholder returns while ensuring ample capital for reinvestment and stock buybacks.
- Market Positioning: By 2024, Lowe's professional segment accounted for approximately 30% of total revenue, further solidifying its market position in the home improvement industry through enhanced omnichannel capabilities and a focus on professional contractors.
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Analyst Views on LOW
Wall Street analysts forecast LOW stock price to rise
22 Analyst Rating
16 Buy
6 Hold
0 Sell
Moderate Buy
Current: 207.530
Low
250.00
Averages
278.27
High
316.00
Current: 207.530
Low
250.00
Averages
278.27
High
316.00
About LOW
Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
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- Medtronic's Revenue Growth: Medtronic reported an 8.4% annual revenue growth for fiscal 2026, reaching $36.4 billion, and raised its dividend to $0.72, marking the 49th consecutive year of increases, underscoring its appeal as a quality dividend stock.
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- Lowe's Dividend Increase: Lowe's announced a 4% increase in its quarterly dividend to $1.25 per share, yielding 2.4%, which is significantly higher than the S&P 500's 1%, despite a 14% drop in stock price this year; this move underscores the company's long-standing commitment to dividend payments, as home repairs remain essential for homeowners in the long run.
- Medtronic Annual Performance: Medtronic reported a record revenue of $36.4 billion for fiscal 2026, an 8.4% increase year-over-year, and raised its dividend to $0.72 per share, marking the 49th consecutive year of increases; while the increment is modest, its 3.5% yield continues to attract investors, reflecting its solid position in the medical device sector.
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- Stable Jobless Claims: Jobless claims remained low at 215,000, reflecting resilience in the labor market, despite weakened consumer sentiment due to high inflation and geopolitical risks, which may impact future spending.
- Dividend Growth Trend: UnitedHealth Group (UNH) announced a dividend of $2.32 per share payable on June 23, having increased its dividend six times over the past five years, with a current payout ratio of 54%, indicating a solid financial structure.
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- Broad Market Coverage: Approximately 90% of the U.S. population lives within 10 miles of a Home Depot location, showcasing the company's market leadership; however, it has only achieved a disappointing total return of 12% over the past five years, significantly lagging behind the S&P 500's 94% return.
- Cyclical Demand Characteristics: Home Depot's demand is cyclical, with revenue jumping 19.9% and 14.4% during the pandemic, but growth is expected to slow to an annualized rate of just 2.2% between fiscal 2021 and 2025 due to high interest rates and inflationary pressures.
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- Capital Return Strategy: Despite cyclical challenges, Home Depot generated $14.2 billion in net income in fiscal 2025 and reduced its diluted share count by 7.3% over the past five years, demonstrating its ongoing profitability and commitment to returning cash to shareholders.
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- Market Leadership: Home Depot boasts a strong physical presence with approximately 90% of the U.S. population living within 10 miles of a store; however, its total return of 12% over the past five years pales in comparison to the S&P 500's 94%, indicating increasing competitive pressure.
- Slowing Revenue Growth: After experiencing revenue growth rates of 19.9% and 14.4% in fiscal years 2020 and 2021, respectively, Home Depot's annualized growth rate has slowed to just 2.2% between fiscal 2021 and fiscal 2025, reflecting the negative impact of high interest rates and inflation on consumer confidence.
- Professional Customer Advantage: Approximately 50% of Home Depot's revenue comes from professional customers, who represent only 10% of its total customer base, yet their sales growth outpaces that of DIY customers, highlighting the company's strong competitive position in the high-value customer segment.
- Stable Financial Performance: Despite facing an unfavorable macroeconomic environment, Home Depot reported a net income of $14.2 billion and operating cash flow of $16.3 billion in fiscal 2025, with consistent profitability supporting its shareholder return policy, including a 7.3% reduction in diluted outstanding shares over the past five years.
See More
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- Price Fluctuation Range: JGLO's 52-week low is $61.83 and high is $71.825, with the latest trade at $70.81, indicating price volatility near the high point, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
See More
Lowe's, Medtronic, and UnitedHealth Raise Dividends
- Lowe's Dividend Increase: Lowe's announced a 4% increase in its quarterly dividend to $1.25 per share, and despite a 14% decline in stock price this year, its 2.4% yield remains significantly above the S&P 500's 1% average.
- Medtronic's Revenue Growth: Medtronic reported an 8.4% annual revenue growth for fiscal 2026, reaching $36.4 billion, and raised its dividend to $0.72, marking the 49th consecutive year of increases, underscoring its appeal as a quality dividend stock.
- UnitedHealth's Dividend Boost: UnitedHealth increased its quarterly dividend by 5% to $2.32 per share, with a 60% rise over the past five years, averaging a compounded annual growth rate of about 10%, providing investors with a hedge against inflation.
- Healthcare Sector Outlook: While Medtronic and UnitedHealth's stock prices have fallen by 15% and risen by 20% respectively this year, their forward P/E ratios of 12 and 21 indicate strong appeal for dividend investors, particularly in the medical devices and health insurance sectors.
See More
Three High-Yield Stocks Increase Dividends
- Lowe's Dividend Increase: Lowe's announced a 4% increase in its quarterly dividend to $1.25 per share, yielding 2.4%, which is significantly higher than the S&P 500's 1%, despite a 14% drop in stock price this year; this move underscores the company's long-standing commitment to dividend payments, as home repairs remain essential for homeowners in the long run.
- Medtronic Annual Performance: Medtronic reported a record revenue of $36.4 billion for fiscal 2026, an 8.4% increase year-over-year, and raised its dividend to $0.72 per share, marking the 49th consecutive year of increases; while the increment is modest, its 3.5% yield continues to attract investors, reflecting its solid position in the medical device sector.
- UnitedHealth Dividend Boost: UnitedHealth increased its quarterly dividend by 5% to $2.32 per share, with a remarkable 60% rise over the past five years, averaging a 10% compound annual growth rate, which not only offsets inflation but also boosts investor confidence in its future performance, as the stock has risen 20% this year while remaining reasonably priced.
- Market Outlook Analysis: All three companies demonstrate strong performance in their respective sectors, and despite market fluctuations, Lowe's and Medtronic's low P/E ratios of 16 and 12 make them attractive options for investors, while UnitedHealth's improved control over medical expenses provides confidence for future growth.
See More
Market Dynamics and Dividend Announcements
- Strong Economic Data: The ISM Manufacturing Purchasing Managers' Index (PMI) rose to 54 in May, marking a four-year high and indicating ongoing economic expansion, although first-quarter GDP growth was revised down to 1.6%, suggesting a slowdown.
- Stable Jobless Claims: Jobless claims remained low at 215,000, reflecting resilience in the labor market, despite weakened consumer sentiment due to high inflation and geopolitical risks, which may impact future spending.
- Dividend Growth Trend: UnitedHealth Group (UNH) announced a dividend of $2.32 per share payable on June 23, having increased its dividend six times over the past five years, with a current payout ratio of 54%, indicating a solid financial structure.
- Diversification Opportunities: In the current market environment, investors may consider companies like UnitedHealth, Donaldson (DCI), Lowe's, and ePlus, all of which have stable dividend records that can provide a safety margin amid market volatility.
See More
Home Depot's Market Leadership and Investment Insights
- Broad Market Coverage: Approximately 90% of the U.S. population lives within 10 miles of a Home Depot location, showcasing the company's market leadership; however, it has only achieved a disappointing total return of 12% over the past five years, significantly lagging behind the S&P 500's 94% return.
- Cyclical Demand Characteristics: Home Depot's demand is cyclical, with revenue jumping 19.9% and 14.4% during the pandemic, but growth is expected to slow to an annualized rate of just 2.2% between fiscal 2021 and 2025 due to high interest rates and inflationary pressures.
- Importance of Professional Customers: About 50% of Home Depot's revenue comes from professional customers, who represent only 10% of its customer base, yet their sales growth outpaces that of DIY customers, highlighting the company's significant advantage in this high-value segment.
- Capital Return Strategy: Despite cyclical challenges, Home Depot generated $14.2 billion in net income in fiscal 2025 and reduced its diluted share count by 7.3% over the past five years, demonstrating its ongoing profitability and commitment to returning cash to shareholders.
See More
Home Depot Faces Cyclical Demand Challenges
- Market Leadership: Home Depot boasts a strong physical presence with approximately 90% of the U.S. population living within 10 miles of a store; however, its total return of 12% over the past five years pales in comparison to the S&P 500's 94%, indicating increasing competitive pressure.
- Slowing Revenue Growth: After experiencing revenue growth rates of 19.9% and 14.4% in fiscal years 2020 and 2021, respectively, Home Depot's annualized growth rate has slowed to just 2.2% between fiscal 2021 and fiscal 2025, reflecting the negative impact of high interest rates and inflation on consumer confidence.
- Professional Customer Advantage: Approximately 50% of Home Depot's revenue comes from professional customers, who represent only 10% of its total customer base, yet their sales growth outpaces that of DIY customers, highlighting the company's strong competitive position in the high-value customer segment.
- Stable Financial Performance: Despite facing an unfavorable macroeconomic environment, Home Depot reported a net income of $14.2 billion and operating cash flow of $16.3 billion in fiscal 2025, with consistent profitability supporting its shareholder return policy, including a 7.3% reduction in diluted outstanding shares over the past five years.
See More
